Personal Development

Post Office Monthly Income Scheme (MIS) Interest Rates in 2022

Post Office monthly income scheme is a scheme that the post office offers. It allows the investors to receive a monthly income in the form of interest during the account term.

The government further decides the interest rate at the low-risk plan. 

Post Office Recurring Deposit Scheme Interest Rates in 2021

Post Office Monthly income scheme is an investment scheme that promises the investor guaranteed returns at a fixed interest rate by the government.

These returns can be availed as a monthly income. Post office monthly income scheme is an investment scheme for the Indian Postal service that promises every investor a guaranteed return at a fixed percentage.

The investor considers a monthly income scheme to be the smartest investment plan to park funds as it gives them different advantages, for instance, keeping the capital intact, better returns than debt instruments, and security with fixed monthly income.

Features of Post Office Monthly Income Scheme

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Here are some key features of the post office monthly income scheme.

You can just have a check on these key features:

  • The post office monthly income scheme is Transferable from one post office to another.
  • The best thing is that it is free of cost and you don’t have to pay any penny for it.
  • For every post office deposit, you can make a separate account that has been opened.
  • The good thing is that one person can open a number of accounts.
  • The maturity amount realized at the end can be invented to post office monthly income schemes.
  • The option of a nominee is always available for this scheme, so in case of unfortunate demise, the nominee becomes entitled to the money.
  • Thinking about TDS, then you will be happy to know that tax deduction at source is not here, but the interest you will earn will be taxable.
  • The maturity term of the monthly income scheme is 5 years.
  • You should withdraw the amount after 5 years, and the amount will be e back to you first of, needless to say, you’ll keep getting your fixed monthly income for the whole period; however, if you have to withdraw the money before 5 years, you have the option of withdrawing it within 1-3 years or withdraw the deposit along with the detection of 2%.
  • You can withdraw the deposit after 3 years with the nominal amount deduction of 1%.

These were some features and pros for post office monthly income schemes. When we talk about pros, then there are always cons for the same.

So, let’s discuss the disadvantages of the post office monthly income scheme.

The disadvantage of the Post Office Monthly Income Scheme

  • The post office monthly income scheme does not offer any tax rebate under section 80C.
  • The amount invested will not be tax-deductible; you won’t be getting any exemption to that.
  • If you will not withdraw the payout if they sit idle and do not need any interest.
  • Interest received here will be taxable in your hands.

How Does It Work?

If you are making an investment in a post office monthly income scheme, it is easy and requires minimal documentation.

The investor needs to submit a copy of address proof, identity proof, and passport size photograph. 

You just have to open an account. An individual or a joint account.

Below is the table that shows the maximum and minimum limits that can be invested in the post office monthly income scheme.

Who is Eligible For Post Office Monthly Income Scheme?


Post office monthly income scheme is designed to diversify the risk of investors when there is no risk. If you want to receive the fixed source of monthly payout, then this will be the better scheme for you.

It is the most suited for senior citizens and the retired people who just entered in no more page zone and are ready to make a one-time investment with the sole purpose of getting a safer income on a monthly basis at a fixed income rate.

The post office monthly income scheme is for those who are looking for a long-term regular source of income at a fixed rate.

The only requirement is that the investor should be a resident in India. If you are a non-resident Indian, you cannot make an investment in a post office monthly income scheme.

The best thing about this post office monthly saving scheme is that the lower entry age is 10 years. The maximum amount a minor can invest is separate.

What should you know about POMIS?

Here is a list of important details that investors should know before investing in a post office monthly income scheme:

Interest Rate

Post office monthly income scheme interest is currently at 6.60 % per annum. If investors invest in the post office in the scheme, it will get 6.60 % on an annual basis on once money at the time of maturity.

Interest will be payable on the completion of the month from the date of opening, and till the maturity date, investors have to claim it.

If the interest payable every month was not claimed by the account holder, such interest will not earn any additional interest.


As for the Indian post office website, a post office monthly income scheme account can be opened with a minimum of thousands, and in multiples of 100, a maximum amount can be deposited in a single account is 4.5 lakh, and for the joint holders, it will be 9 Lakhs in a joint account all the joint holders will be having an equal share in the investment.


Like any tax saving money, this post office scheme is also for 5 years locking period once you can claim income tax exemption now once investment in this scheme is under section 80c of Income Tax Act, 1961.

Guaranteed Return Scheme

This post office 15 is a risk-free guarantee that if investors invest in 8, there will be no risk, and you will receive the interest amount monthly.

See also:


The monthly income scheme is surely an effective investment tool that efficiently deploys the capital to earn a guaranteed income for you throughout the tenure; moreover, there is no risk involved.

Post office monthly income scheme is an all-time favorite among old east and retired people.

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